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Shruti Bhogal

Responding to the critique of their article on the commission agent system in Punjab, the authors highlight the perils of private solutions to agrarian problems. They propose an enhanced role of the public sector in obliterating the exploitative stronghold ofÂ arthiyaÂ system in order to protect the interests of farmers and address the problems of Punjab's agrarian economy.

Despite favourable policy measures, growth of financial institutions and public interventions in the marketing of agricultural produce, the structure of Punjab's agricultural economy makes farmers dependent on commission agents. These agents trap the farmers in a vicious circle of indebtedness. Based on a field survey, this study locates the commission agent system in Punjab's agriculture set-up and recommends reframing it in order to extricate farmers from the clutches of these agents.

The small peasantry in agriculturally advanced Punjab faces a severe economic crisis. Though the total workforce has increased over time, the proportion engaged in agriculture has been falling and the number of marginal and small holdings has been declining. The farm surpluses of indebted farmers are very low, and 14% of marginal and 9% of small farmers are effectively bankrupt. Low profitability has prompted many small farmers to leave agriculture and 28% of them have entered the labour market. More pressingly, a significant number have preferred to take their own lives.

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